Portfolio Managers and Options-based Funds www.cboe.com/Funds


Videos - Portfolio Managers Discuss Use of CBOE Options

Puneet Kohli, Healthcare of Ontario Pension Plan (CBOE RMC in March 2014) (03:10) -
"...We have the ability to trade options, to trade futures...we do it prudently..."

Scott Maidel, Russell Investments (CBOE RMC in March 2013) (02:55) --
"...we have found a great degree of interest in buy-write, put-write, as well as various hedging strategies...ties in very, very well with CBOE's BXM, BXY and PUT indexes..."

Testimonials on Index Options

Paul R. Stewart

"Our primary objective is to capture the majority of the returns associated with equity market investments while exposing investors to less risk than other equity investments. Risk management has been our focus for more than 35 years. In that time, we've maintained a consistent risk-management strategy using index options to hedge in rising, declining, and volatile markets. Our strategy is built on the belief that generating cash flow - rather than seeking to leverage fluctuations in the prices of securities - can be a lower risk way of participating in equity markets. CBOE's benchmark indexes, including the CBOE S&P 500 BuyWrite Index (BXM), can serve as valuable tools to help investors understand how index options can be used to manage portfolio volatility."

-- Paul R. Stewart, CFA, CEO, President, Portfolio Manager, Gateway Investment Advisers, LLC, Cincinnati, OH

"Market experience ranks among our most valuable assets. Since 1983 Rampart has responded to different market scenarios with systematic and disciplined options solutions, helping clients generate incremental yield, soften downside risk and dampen volatility. Over a decade ago, Rampart recognized the need for an options benchmark to help investors appreciate the special risk-reducing, return-enhancing characteristics of buying a portfolio of stocks and systematically selling calls on that portfolio. In 2003 Rampart became the first licensee of the CBOE S&P 500 BuyWrite Index or 'BXM.' Other important benchmark indexes that sell one-month S&P 500® (SPXSM) options include the CBOE S&P 500 2% OTM BuyWrite Index (BXY) and the CBOE S&P 500 PutWrite Index (PUT). Over the past 25 years, all of the foregoing CBOE indexes have had less volatility than the S&P 500 stock index."

-- Ronald M. Egalka, President and Chief Investment Officer, Rampart Investment Management Company, Boston, MA

Ronald M. Egalka

Peter J. Connors

"For over 30 years, Connors has utilized covered call option writing in portfolios to enhance the cash flow and lower the volatility typically associated with equity investing. The returns of the BXM index exemplify the advantages of option writing and provide tangible evidence for investors of the positive risk-adjusted returns that the strategy can generate."

-- Peter J. Connors, President, Connors Investor Services, Inc., Wyomissing, PA

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BXY Index - Comparisons

Testimonials appearing on this website reflect individual experiences of those who have used CBOE products and/or services in some way or another. However, they are individual results and results do vary. CBOE does not claim that they are typical results that customers will generally achieve. The testimonials are not necessarily representative of all of those who will use CBOE products and/or services. No compensation was provided for these testimonials.

The BXM, BXD, BXN, BXY, CLL and PUT indices (the "Indexes") are designed to represent proposed hypothetical options strategies. The actual performance of investment vehicles such as mutual funds or managed accounts can have significant differences from the performance of the Indexes. Investors attempting to replicate the Indexes should discuss with their advisors possible timing and liquidity issues. Like many passive benchmarks, the Indexes do not take into account significant factors such as transaction costs and taxes. Transaction costs and taxes for strategies such as the Indexes could be significantly higher than transaction costs for a passive strategy of buying-and-holding stocks. Investors should consult their tax advisor as to how taxes affect the outcome of contemplated options transactions. Past performance does not guarantee future results. This web page contains index performance data based on back-testing, i.e., calculations of how the index might have performed prior to launch. Backtested performance information is purely hypothetical and is provided in this web page solely for informational purposes. Back-tested performance does not represent actual performance and should not be interpreted as an indication of actual performance. It is not possible to invest directly in an index. CBOE calculates and disseminates the Indexes. Supporting documentation for any claims, comparisons, statistics or other technical data is available from CBOE upon request. The methodologies of the Indexes are the property of Chicago Board Options Exchange, Incorporated (CBOE).

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